(August Results) How i would invest in the singapore stock market if i had 100k of spare money

 

(August Portfolio)

(August 2021 , YTD and since Inception 9 Sept 2020 Returns)

Overall Results remain satisfactory, considering that the STI ETF YTD Returns stood at 10.02%. However there are some results such as OTS Holdings that did bring some disappointments.

2 Results that impressed/ on the better side/ acceptable

1) Yanlord Land - Previous Year's high sales start to trickle in, contract liabilities have increased as well, these should convert into stronger property management income in future.

Land acquisitions in 1H 2021 also demonstrated certain financial stability in an industry which is highly unstable financially due to high leverage and debt ratio.

2) Propnex - Perhaps a reflection of the resilient and strong local demand for properties, the thesis is pretty simple. 

Lack of overseas travel and a low interest rate environment would encourage more investments and no matter if u make money via stocks, crypto, bonds, forex or by starting a business, buying a new and better house would always be a way to reward one-self for it. 

The cloud of doubt would always be would Singapore Property be a bubble, but instead of thinking that way i think it depends on the entrants in different housing markets. 

For e.g a rich man in China buys 20 private condo for investment vs a couple who is upgrading from their BTO to private. 

While the former is likely to crash the market, one would believe that the effect of foreign inflows is likely to dwindle due to Covid and hence it is likely the latter taking effect now.

2 Results that did not impress as well

1) OTS Holdings - As mentioned, 2H was probably the worst half in the past 2 financial years, as such it is a pity that this stock would be a counter that would need to show some growth in terms of expanding to new regions in the upcoming financial year. 

If not, it would be labelled as a 1-off wonder due to stock piling for Covid in Singapore and Panic buying in Malaysia.

2) Uni- Asia Group - The stock actually plunged the next trading day after results were released, but it has recovered since then, which is not a surprise as i guess a few folks were plotting 20 000 or 25 000 charter rates and having some astrological thoughts (in Chinese they call it 天马行空, in crypto they call it to the moon) Unfortunately, there will always be a lag time in renewals and Q3 rates will be a better indicator. On top of that, despite disclosing Q2 charter rates that are below par, the dry bulk market has been strong since June which means that the winds are in its sails when they do renewal.

The results briefing seem to indicate positivity as well as KGI Securities did give a better target price as well.

All in all as mentioned before, with current rates at 32k, even with a drop to 25k, it is still forecasting a better year ahead as a whole. A shock would probably be other business segments doing badly or a sharp drop in rates due to demand shock. 

Yes 1H was not ideal to some while to some it was a beat. Nevertheless there is no reason to not wait longer to see how things turn out.